Malta introduces blockchain regulation
Malta has introduced new regulations to bring greater certainty in the distributed technology ledger (DTL) arena.
In February 2018 Malta unveiled a proposed framework for the regulation of blockchain or ‘distributed ledger technology’ (DLT). This will take the form of three acts, which will cover three core aspects.
1. The Malta Digital Innovation Authority (MDIA) Act covers the establishment of this new body, which will be dedicated to the supervision and certification of DTL platforms and smart contracts.
2. The Technology Arrangements and Service Providers (TAS) Act covers the setting-up of a registration and certification mechanism for any technology arrangements which voluntarily wish to register themselves.
3. The Virtual Financial Assets (VFA) Act will regulate the offering of VFAs and include the implementation of a bespoke financial instruments test.
This framework is intended to provide further security to investors, platform developers and issuers, and help eliminate the uncertainty underpinning the current cryptocurrencies market by offering a safer and more stable business environment